Overtime Rules

NATSO urged the Department of Labor (DOL) to refrain from making dramatic changes to the Overtime Rule that would expand the universe of employees eligible for overtime pay, arguing that significant changes to the salary threshold and duties test would harm the very employees that they are designed to help. The Trump Administration is reexamining the rules governing overtime pay in the wake of the Obama Administration's effort recently being struck down by a federal court.

A federal judge in Texas on August 31 invalidated the Obama Administration's controversial rule expanding the number of employees that are entitled to overtime pay. The focus of the judge's opinion was the fact that the rule -- which would have increased the minimum salary threshold for overtime pay from approximately $23,000 per year to approximately $47,000 per year -- insufficiently considered whether employees actually perform "white collar" jobs and thus should be exempt from overtime.

Labor Department Secretary Alexander Acosta testified at a recent Congressional hearing that he plans to review the overtime rule involving exempt salaried employees.
The Obama Administration sought to increase the minimum salary required for overtime-exempt employees to $47,476 annually for full-time employees from $23,660. However, a federal judge in November 2016 issued a nationwide injunction against the DOL's regulation expanding the number of workers who would be eligible for overtime pay.

In a stunning decision, a federal judge in Texas issued a nationwide injunction against the Department of Labor's (DOL) regulation expanding the number of workers who would be eligible for overtime pay. The regulations would have dramatically increased the salary threshold for exempt employees to $47,476 per year from $23,660. The new rules were scheduled to take effect on Dec. 1.

NATSO members are reminded that on Dec. 1, 2016, the Department of Labor’s new overtime rule that doubles the minimum salary threshold that employees must earn to be exempt from overtime pay is scheduled to take effect.

NATSO joined more than 400 organizations representing a broad spectrum of the national economy and employing millions of employees in expressing strong support for S. 3464, the Overtime Reform and Review Act, which would provide employers significant relief from the negative impacts of the Department of Labor’s (DOL) final overtime rule.

In a move that some consider to be a "political vote" rather than a substantive one, the U.S. House of Representatives on September 28 passed legislation that would delay for six months a new Department of Labor Rule revising the standards overtime pay eligibility. The rule is scheduled to take effect on December 1, 2016. Under this legislation, it would not take effect until June 1, 2016. The bill is highly unlikely to become law, and represents a political vote to enable House members to campaign on the issue during the home stretch of election season.

A group of 21 states filed suit in the Eastern District of Texas Sept. 20 challenging the U.S. Department of Labor’s new rule governing which employees are eligible for overtime pay, arguing the agency unconstitutionally overstepped its authority to establish a federal minimum salary level for white collar workers.
The U.S. Chamber of Commerce and more than 50 other business groups filed a separate challenge to the rule in the same federal court in Sherman, Texas, just hours later.

NATSO and its allies in the labor community have begun advocating for legislation that, rather than repealing the DOL's new overtime rule would phase in the new salary threshold incrementally. NATSO will continue urging policymakers to repeal the new law, but the chances of President Obama signing such legislation are slim. The lobbying efforts in favor of such legislation, however, helped prompt Democrats to introduce the modified bill.

The House Appropriations Committee on July 14 approved the fiscal year 2017 Labor, Health and Human Services funding bill with provisions that would prohibit the Labor Department from enforcing several labor initiatives opposed by the travel plaza and truckstop industry.

The House Appropriations Subcommittee for Labor, Health and Human Services approved a fiscal year 2017 spending bill with provisions which would block several labor initiatives that stand to hurt the travel plaza and truckstop industry.

Small businesses may soon be forced to lay off employees, reduce benefits and lower wages to cover the costs of implementing the Department of Labor’s (DOL’s) new overtime rule, small business owners testified before the House Committee on Small Business.

As part of a broader Republican policy agenda before the November elections, House Speaker Paul Ryan (R-Wisc.) unveiled a regulatory reform agenda that outlines a number of policy proposals aimed at reining in federal regulations and giving Congress more power over regulators and authority to approve or reject major rules.

The Department of Labor’s (DOL) final Overtime Rule will make it harder for small businesses to grow and create jobs as well as harm the employees it is designed to help, a panel of experts testified before the House Committee on Education and Workforce.

On May 17 the Department of Labor (DOL) released a final rule governing overtime pay under the Fair Labor Standards Act. Although the Final Rule improves upon the proposed rule, incorporating a number of NATSO's comments to DOL, it nonetheless includes a significant increase to the overtime salary threshold, and includes automatic increases in the future. This will present considerable challenges to employees and employers alike.
NATSO is still analyzing the more than 500 page rule, and will provide a detailed summary and compliance guide in the coming days.

NATSO met with the White House Office of Management and Budget (OMB) May 4 to voice industry concerns regarding the Department of Labor’s (DOL) proposed Overtime Rule, which would greatly expand the universe of employees eligible for overtime pay.

As the Department of Labor works to finish its overtime rule by summer, rumors are circulating that the agency could lower the salary threshold for overtime eligibility.
It remains unclear at this time what the final overtime rule will look like. However, Politico reported that the agency is considering lowering the salary level at which employees are eligible for overtime to $47,000, down from $50,440 in the proposed rule.

There were several important developments the week of March 14 on two labor issues that are critical to NATSO members: Efforts to expand the universe of employees entitled to overtime pay; and the joint employer issue, which could expose companies to legal liability for how their subcontractors, staffing agencies, and franchisees treat their employees.

More than 100 members of the U.S. House of Representatives asked Labor Secretary Thomas Perez to reconsider the Department of Labor’s proposed regulation to expand overtime eligibility arguing that the one-size fits all rule would adversely affect employers and hurt the nation’s workers instead of helping them.